5 more million homes needed for supply to catch up to demand
There are roughly 140 million homes in the United States, but according to a recent report by Realtor.com, that isn’t quite enough. In fact, there’s such an imbalance in the supply of homes and the number of people who want to become homeowners that the U.S. needs 5.24 million more homes.
To be sure, this shortage didn’t spring up overnight, and housing demand from homebuyers being a little ahead of supply isn’t uncommon. For example, in 2019, the same report found a shortage of 3.84 million. But the red-hot 2021 housing market has certainly made it worse.
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Why do we have a housing shortage?
There are a few reasons why we’re short more than 5 million homes. Just to name some of the most significant:
- High rate of household formation: It’s a known fact that the millennial generation is the largest, and this is a…